Question

I have been in a lease with a property management company where I live. I pay them and then they pay the owner of my unit. He has not paid his mortgage since December of 2010 and has went into default and is in foreclosure. My property manager is currently attempting a short sale on the home with no luck and the bank's auction date keeps getting pushed back. I have heard that if the owner were directly controlling my property I should not be paying him rent if he is not paying the bank. But my property manager will not give me anything in writing that states I should be still paying rent to her, she will only tell me face to face that I should be paying her the normal monthly payments. I don't want to create waves with her because I will most likely do business with her for my next rental.
Am I obligated to pay? I cannot find anything legitimate online to back up her claims that I am still obligated to pay or even to the contrary to support my thought process.
Thank you
Matthew

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United States | California | Tenant Law

Cost: Free

Answer

Mar 27,2012 12:50 PM

Generally speaking, under the Protecting Tenants At Foreclosure Act, you (the tenant) are still obligated to pay your rent to the landlord, even if he is going through a foreclosure. If the property is foreclosed upon, however, the new owner will have to give you at least 90 days notice to move. I'm sure this isn't the answer you're looking for, and I'd still recommend speaking with an attorney about your specific issue (especially to review your current lease agreement).
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This information is given for legal education only. It may not work for your specific situation. It is not legal advice, and I am not your lawyer. You have to find your own local lawyer to get legal advice and help with your problem.